The price of purchasing and maintaining an auto insurance policy is unavoidable for many motorists. It’s not uncommon for a state to require that all resident vehicle owners maintain an automobile protection plan of some form or another. Having a policy whether required by law or not, however, is almost always recommended. In order to make coverage more affordable, many motorists find that it’s easier to distribute the cost of a policy by making monthly payments. This method is particularly effective for individuals that may only be able to find expensive coverage because of poor driving records. In this situation, dispersing payments over the course of a year may be the only way to afford a policy.
Because nearly every insurer offers a different way of paying for service, it’s important for motorists to contact a company to discover what options are available. There are some providers which only allow customers to pay for service in one large deposit, or in larger installments throughout the year. Some companies, on the other hand, will allow for monthly deposits or even the purchase of car insurance with no down payment for additional savings. Although a motorist may not be placing any money down, in most situations an individual purchasing one such plan will still have to make the first month’s premium payment in order to obtain coverage.
Although making monthly payments is an excellent way of dispersing the costs of coverage, there are a few concerns that motorists should be aware of. Should a policyholder miss a payment there is a chance that the consequences can be very unpleasant. Doing so could potentially result in a number of fees, a lapse in coverage, or one’s policy may be canceled entirely resulting in a cancellation fee or reinstatement fee when the payment finally arrives. Although a monthly based policy may be an exceptional option for many vehicle owners, motorists are still encouraged to investigate as many options as possible. One choice that may end up saving a vehicle owner a large amount of money is paying for a policy in its entirety upon signing.
Although paying in full can often amount to a large sum of money, paying for coverage in this fashion has several advantages. When a policy is paid in full the policyholder will not have to pay yet another monthly bill, which in turn eliminates the chances of making a late payment and the consequences that typically follow. Additionally, motorists will not have to pay any financing fees that typically accompany monthly payments, which can sometimes be around $10 a month. To find a balance between the two options the Washington State Office of the Insurance Commissioner recommends paying for a premium in full every six months in order to avoid any potential fees that may come from monthly financing. Knowing this information, as well as any additional details can all lead to more affordable coverage.
Source: http://www.onlineautoinsurance.com/pay-monthly/
